Accountants use XBRL (eXtensible Business Reporting Language) to transform financial statements into machine-readable data by applying standardized tags to financial line items. This enables efficient digital filing with regulators like the SEC, improves data accuracy, allows for automated validation, and facilitates easier, faster analysis and benchmarking of financial data.
XBRL, in accounting, is a global standard used for exchanging business information. It allows financial data to be communicated and processed consistently and accurately, enhancing transparency and efficiency in financial reporting.
XBRL stands for eXtensible Business Reporting Language, a global standard for digital business reporting. It enables seamless data exchange between organisations and regulators, ensuring accuracy and compliance for business information.
Step 1: Begin with the company's financial statements. Step 2: Map Company's every financial Element to a corresponding element in published taxonomy. Step 3: Create the instance document- It involves tagging the XBRL taxonomy elements with various accounting heads in the books of accounts of the company.
The main advantages of XBRL are transparency, accessibility, and comparability. Transparency: XBRL reporting makes financial and non-financial disclosures highly transparent since every data point is marked up with an XBRL tag and recorded digitally.
The Filing of XBRL is a complex process and combined with inexperience can lead to discrepancies in the financial statements. Incorrect or false financial statements can not only lead to penalties and dis-reputation but can also lead to bad decision-making. All this can make a company suffer in the very long run.
XBRL is a required component of certain SEC filing types such as (but not limited to) 10-Q, 10-K, 20-F, 40-F, 8-K, Proxy and certain 6-K forms and is included as an exhibit to the EDGAR HTML document. In certain circumstances, XBRL may be required for secondary offerings in an S-1/F-1 or S-4/F-4 filing.
Here's how we work:
The standard deadlines vary between listed companies and non-listed companies: These companies must file their XBRL data within 5 months from the end of the financial year. Non-listed companies have a slightly longer grace period, with filings due within 7 months from the end of their company's financial year.
Data Analysis and Auditing: XBRL facilitates data analysis and auditing processes for government financial reports. Auditors can use XBRL-tagged data to conduct more efficient and effective audits and analytical tools can easily process and compare financial information across different reporting periods.
The four core financial statements are the Balance Sheet (snapshot of assets, liabilities, equity), the Income Statement (revenues, expenses, profit over time), the Cash Flow Statement (cash inflows/outflows over time), and the Statement of Shareholders' Equity (changes in owner investment over time), all crucial for understanding a company's financial health.
Welcome to IRIS iConnect, the ultimate solution for XBRL analytics! With our powerful add-in for Microsoft Excel, you can easily load and analyze XBRL data from public company filings.
Common functions in many countries that make use of XBRL include regulators of stock exchanges and securities, banking regulators, business registrars, revenue reporting and tax-filing agencies, and national statistical agencies.
To prepare your data for XBRL, follow these steps:
XBRL (eXtensible Business Reporting Language) is the open international standard 1 for digital business reporting. XBRL is used to deliver human-readable financial statements in a machine-readable, structured data format.
Applicability of XBRL Filing
This includes: Public companies listed on the Indian stock exchange, including their Indian subsidiaries. Companies with ₹100 crore or more as their annual turnover. Companies having a paid-up capital of Rs 5 Crore or more.
S$50 for Simplified XBRL. S$100 for Full XBRL.
This standard is maintained by XBRL International, an international non-profit consortium of approximately 600 member organizations, companies, and government agencies around the world. It is an open standard, provided free of license fees, and is already being used in more than 50 countries.
Import XML data
The majority of XBRL conversion tools can import data directly from these systems, reducing manual data entry.
Since most data collection formats are static and do not allow users to interact with data, the SEC in 2009 mandated XBRL as the format in which companies submit quarterly and annual financial information.
All companies (limited or unlimited by shares), including dormant companies, are required to file XBRL FS in accordance with the filing requirements. Find out more about who needs to file financial statements.
Every business entity that is required to file their annual returns must prepare their financial statements in XBRL format after the end of its financial year. They should file the financial statements within 30 days after the annual general meeting.